FY2014 Financial Results - Toyota Boshoku · due to falling production volume in Japan and model...
Transcript of FY2014 Financial Results - Toyota Boshoku · due to falling production volume in Japan and model...
Toyota Boshoku CorporationToyota Boshoku Corporation
FY2014 Financial ResultsFY2014 Financial Resultsended March 31, 2014ended March 31, 2014
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11..Financial Results for FY2014Financial Results for FY2014 1) Overview of Financial Results2) Financial Results for FY2014 (ended March 31, 2014)
3) Financial Forecast for FY2015
22..Activities for Profit Improvement Activities for Profit Improvement 1) 2020 Vision2) Enhance profit foundation3) Research & Development4) New Customer Business Activities
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1) Overview of Financial Results
2) Financial Results for FY2014 (ended March 31, 2014)
3) Financial Forecast for FY2015
11..Financial Results for FY2014Financial Results for FY2014
1) Overview of Financial Results
1/23
1. Year-on-year income and profit increase due to exchange rate effects, growth inproduction volume in the Americas, Europe & Africa among other factors
1. Year-on-year income and profit increase due to exchange rate effects, growth inproduction volume in the Americas, Europe & Africa among other factors
3. For the next term, a decrease in income and profit is expected, due to falling production volume in Japan and model lineup changes in Asia & Oceania
3. For the next term, a decrease in income and profit is expected, due to falling production volume in Japan and model lineup changes in Asia & Oceania
2. Annual dividends of 18 yen with end-of-term dividends of 9 yen;the same as the previous year
2. Annual dividends of 18 yen with end-of-term dividends of 9 yen;the same as the previous year
2) Financial Results for FY2014 (ended March 31, 2014)
2/23
Overview of Financial Results (100 million yen)
FY2013 FY2014 Fluctuation
Net Sales 10,794 100.0% 12,183 100.0% 1,389 12.9%
Operating Income 253 2.3% 288 2.4% 35 13.9%
Ordinary Income 339 3.1% 402 3.3% 63 18.8%
Net Income 157 1.5 % 126 1.0 % -31 -20.1 %
ExchangeRate
US$ 83 yen 100 yen 17 yen (weak yen)
Euro 107 yen 134 yen 27 yen (weak yen)
Per Share Net Income 85.23 yen 68.05 yenPer Share CashDividend
18.00 yen 18.00 yen
2) Financial Results for FY2014 Unit production by Region
3/23
0
400
800
Seat assembly productionSeat assembly production
FY2013 FY2014
TotalTotal
(10,000 Units)
690 707
+17+2.5%
335 332
111101
212213
42 51
-3-0.9%
+10+10.2%
+1+0.5%
+9+20.7%
FluctuationFluctuation Rate
By RegionBy Region
(10,000 Units)
Japan Asia &Oceania
Europe &Africa
TheAmericas
2) Financial Results for FY2014 Net Sales & Operating Income by Region
4/23
Total Amount
FY2014 12,183
FY2013 10,794
Fluctuation +1,389
Total Amount
FY2014 288
FY2013 253
Fluctuation +35
1,765
6,6146,219
2,1422,785
3,227
603863
+394+6.3%
+376+21.3%
+442+15.9%
+260+43.2%
57[0.9%]
83[1.3%]
-34[-1.6%]
-34[-2.0%]
281[10.1%]
290[9.0%]
-61[-10.2%]
-48[-5.6%]
+25+44.7%
+0.5-
+12-
+8+3.1%
FY2013 FY2014
Net SalesNet SalesNet Sales Operating IncomeOperating IncomeOperating Income(100 million yen)(100 million yen)
*[ ] Operating Income Rate
Japan Asia &Oceania
Europe &Africa
TheAmericas
Japan Asia &Oceania
Europe &Africa
TheAmericas
2) Financial Results for FY2014 Ordinary Income Increase & Decrease Analysis
5/23
339
(100 million yen)
-85
-38
Ordinary Income +63 (+18.8%)
FY2014
402+33
+28
+169-92
+48
Operating Income +35 (+13.9%)
FY2013
Effects from changes in products Increased
overhead costs Increased
R&D expenses
Effects of increased
production & income
Rationalization
Effects of FOREX rate
Non- operating income
3) Financial Forecast for FY2015
6/23
Financial Forecast for FY2015 (100 million yen)
FY2014 FY2015 Fluctuation
Net Sales 12,183 100.0% 12,000 100.0% -183 -1.5%
Operating Income 288 2.4% 270 2.3% -18 -6.3%
Ordinary Income 402 3.3% 290 2.4% -112 -28.0%
Net Income 126 1.0% 120 1.0 % -6 -4.8%
ExchangeRate
US$ 100 yen 100 yen -
Euro 134 yen 140 yen 6 yen (weak yen)
Per Share Net Income 68.05 yen 64.76 yenPer Share CashDividend
18.00 yen 18.00 yen
3) Financial Forecast for FY2015 Unit production by Region
7/23
Seat assembly productionSeat assembly production
TotalTotal By RegionBy Region
0
100
200
300
400
500
600
700
800
900
1,000 +23+3.3%
707 730
-20-6.0%
+14+12.6%
+22+10.3%
+7+13.7%
332 312
125111
235
58
213
51
FY2014 FY2015
(10,000 Units)
FluctuationFluctuation Rate
(10,000 Units)
Japan Asia &Oceania
Europe & Africa
TheAmericas
3) Financial Forecast for FY2015 Net Sales & Operating Income by Region
8/23
Net SalesNet SalesNet Sales Operating IncomeOperating IncomeOperating Income(100 million yen)(100 million yen)
Total Amount
FY2015 12,000
FY2014 12,183
Fluctuation -183
Total Amount
FY2015 270
FY2014 288
Fluctuation -186,614
6,400
-214-3.2%
2,4002,142
3,1003,227
863 900
+36+4.2%
-127-4.0%+257
+12.0% 85[1.3%]
83[1.3%]
-34[-1.6%]
-15[-0.6%] -48
[-5.6%]
-40[-4.4%]
290[9.0%] 240
[7.7%]+2
+2.4%
+19-
-50-17.3%
+8-
*[ ] Operating Income Rate
FY2014 FY2015
Japan Asia &Oceania
Europe &Africa
TheAmericas
Japan Asia &Oceania
Europe &Africa
TheAmericas
3) Financial Forecast for FY2015 Ordinary Income Increase & Decrease Analysis
9/23
402
290
-115 -94+200-35
-68
Ordinary Income -112 (-28.0%)
Operating Income -18 (-6.3%)
(100 million yen)
Effects of decreased production and income
Effects from changes in products
Increased overhead costs
Rationalization
Non operating income
FY2015FY2014
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1) 2020 Vision
2) Enhance profit foundation
3) Research & Development
4) New Customer Business Activities
2. Activities for 2. Activities for PProfit rofit IImprovementmprovement
1) 2020 Vision
10/23
2. Our company’s aspirations for 2020
Looking into the future, we will create tomorrow’s automobile interior space that will inspire our customers the world over
Looking into the future, we will create tomorrow’s automobile interior space that will inspire our customers the world over
(1) A company that persists in proposing excellent mobility for customers throughout the world
(2) A trusted company that grows together with all stakeholders
(1) A company that persists in proposing excellent mobility for customers throughout the world
(2) (2) A trusted company that grows together with all A trusted company that grows together with all stakeholdersstakeholders
1. The company we aim to become
Our vision : Realizing our aspirations for 2020Our vision : Realizing our aspirations for 2020
1) 2020 Vision
11/23
16,000
9,642 10,794 12,183
800(5%)
209(2.2%)
253(2.3%)
288(2.4%)
270(2.3%)
Management targetManagement target
FY2012 FY2013 FY2014 FY2015 FY2016 FY2021 (results) (results) (results) (estimates) (target) (target)
(million yen)
Net Sales
Operating Income
12,000
10%NCB* sales ratio 30%
Resolution of pressing issuesResolution of pressing issues
Our aspirations for 2020Our aspirations for 2020* New Customer Business
(ending Mar 2021)
2) Enhance profit foundation (The Americas)
12/23
Profit structure reform through enhanced synchronization betweenthe Americas and Japan
Profit structure reform through enhanced synchronization betweenthe Americas and Japan
- 32
(1) Improve quality(2) Launch new projects & enhance functions
(1) Analyze transient costs & avoid recurrence(2) Initiatives grouped by theme for
improving earnings of production entities
- 2
First Half Second Half First Half Second Half
Operating Income
- 15
Production preparation costs for new products at production entities and losses from new product launches lead to larger-than-expected transient costs. (Labor, material, transport and support costs)
FY2014FY2014 FY2015FY2015
・・
Production losses from delays in productionProduction losses from delays in production & & manufacturing preparationmanufacturing preparation・・
QAQA**--related lossesrelated losses・・
Distribution difficulties due to cold weatherDistribution difficulties due to cold weather
Reforming profit structures
1. Focus on Monozukuri * fundamentals
2. Strengthen synchronization of profit reform initiatives (GMH*1 ⇔
RM&CH*2 ⇔
production entities)
CAUSES
0
*QA=Quality Assurance
*Monozukuri = Manufacturing
*1,2 GMH = Global Mainstay Hub (HQ);RM&CH = Regional Management & Collaboration Hubs
2) Enhance profit foundation (The Americas)
13/23
Profit structure reform through enhanced synchronization between the Americas and JapanProfit structure reform through enhanced synchronization between the Americas and Japan
(1) Strengthen organization: Increase manufacturing supervisors & transferees
(2) Improve quality(2) Improve quality・
Robust worksites that follow established rules・
Analyze cause of quality issues in primary factories
(3) Improve function(3) Improve functionss of new project launchesof new project launches・
Enhanced production management & engineering functions when starting up projects
・
Management system able to handle exceptional circumstances quickly
(1) Analyze transient costs(1) Analyze transient costs && avoid recurrenceavoid recurrence(2) Themed initiatives for improving earnings of production enti(2) Themed initiatives for improving earnings of production entitiesties
・
Earning improvement activities, divided into themes drawing on individual GMH functions, further analysis of transient costs and creation of plans to avoid recurrences
・
Special management of primary projects by top GMH management
GMH (Japan)GMH (Japan)The AmericasHub CompanyThe AmericasHub Company
Organizational Response
Report Directive
Progress report
Improvedsynchronization
Follow-up bytop management
The Americas Hub Company (TBA) Profit Improvement Committee
The Americas Hub Company (TBA) Profit Improvement Committee
GMH Functions (Japan)GMH Functions (Japan)
Progress report
Directive
1. Focus on Monozukuri fundamentals
2. Strengthen synchronization of profit reform initiatives (GMH*1 ⇔ RM&CH*2 ⇔ production entities)
*1,2 GMH = Global Mainstay Hub (HQ); RM&CH = Regional Management & Collaboration Hubs
Per the organization below, this will enable TB to identify issues faster and respond with more speed
Top Management MeetingTop Management Meeting
2) Enhance profit foundation (Europe)
14/23
Working on profit structure reform to put European operations in the black by FY2017Working on profit structure reform to put European operations in the black by FY2017
-600
1. Merge European HQ Functions
Sales
1) Separated management departments from BAE and integrated into European hub company (April 2014)
TBT TBF TBSO
TBAI TBSA TBR
TL TBMECA
TBEU Manufacturing Subsidiaries
BAE (Manufacturing)
4 German companies
BAPL(Poland)
BACZ(Czech)
HQ Functions
FY2014 FY2015 FY2016 FY2017(results) (estimates) (target) (target)
Goal: Streamline organization and boost efficiency
Operating income
863900
- 48- 40
European hub company (TBEU)European hub company (TBEU)
Munich Branch
Losses due to NCB*
Europe & Africa profit structure reformAim to secure profit by unifying Europe & Africa region through BAE reorganization plan (May 2013 on)
*NCB=New Customer Business
2) Enhance profit foundation (Europe)
15/23
Working on profit structure reform to put European operations in the black by FY2017Working on profit structure reform to put European operations in the black by FY2017
2) Strengthen organization & Develop human resources・
Dispatch Japanese transferees ・
Train core personnel in Japan
1) Improve productivity・
Move from 3 to 2 shifts (reduce operation time)・
Consolidation of location (improve operational availability)
(Example) Switch from 3 to 2 shifts and consolidateproduction space
3) Close unprofitable factories and further streamline workforce
0
3 shifts
3 shifts →
2 shifts2 shiftsO
perating Tim
eProduction Consolidation
(Time)
Mold Machine A B C D
Improvement Initiatives: Level production, tackle operational availability and yields, reduce defects, speed up repairs and die changes, etc.
2. Bolster manufacturing department
Challenge : Create rapid stabilization after new product changeovers and form a stronger organizationthat closely adheres to the TB Way.
2) Enhance profit foundation (Japan)
16/23
Earnings improvement through restructuring of factoriesEarnings improvement through restructuring of factories
Medium-term restructuring from FY2015 and on
Challenge: Secure earnings from domestic production of 3 million units or lessChallenge: Secure earnings from domestic production of 3 million units or less
Door trim high quality stitching, etc.
Customer
Distance
Close
Effective use of surplus equipment around the world
4. Effective use of equipment
New powertrain components, etc.
2. Further bolster new projects
1. Production of high-added value components
Move closer to customer’s factories and reduce delivery transfer costs at production bases
3. Optimize location
Consolidation ofproduction spacefrees up space
Increased sales
Reduced losses Controlinvestment
Mass production processesConsoli-
datespace
Overseas
Improved profitability
Further consolidation and boosting efficiency
Introduce new projectsIntroduce new projectsIntroduce new projectsCustomer trends
・ Changing environment
Customer trends
・ Changing environment
3) Research & Development (TNGA)
17/23
Engaging in TNGA activitiesEngaging in TNGA activities (TNGA: Toyota New Global Architecture)
PPromoteromotedd TNGA activities for interior parts such as rear seat frames, doTNGA activities for interior parts such as rear seat frames, door trimor trim, etc, etc. .
ReceivReceiveded award of excellence fromaward of excellence from Toyota Motor Corporation excellence for promoting TNGAToyota Motor Corporation excellence for promoting TNGA
1. World-leading front seat performance
(Comfort, safety & responsiveness)
2. Common parts utilization with global-based Monozukuri *
(Reduced number of frame models & increased cost competitiveness)
Contributions to ToyotaContributions to ToyotaNew designs for each car model
Common design for all car models
Previous:
TNGA:
*Monozukuri = Manufacturing
Charpy impact strength chart
Novel bio-based plastic with top-level impact strengthNovel bio-based plastic with top-level impact strength
Developed materials can be used for multitude products
500nmPP
PA11
500nm
(kJ/m2)
100
80
60
40
20
0Current bio-plastic
Salami in co-continuousphase structureWorld first
PC/ABS
Joint development partner: Toyota Central R&D Labs., Inc.
PC/ABSPolycarbonate Alloytop-level impact strength
DevelopmentDevelopment
Charpy impact strength
Salami structureOne of the few World first examples
3) Research & Development (Bio-Plastic Alloy)
18/23
3) Research & Development (Train Seating)
19/23
Gran Class seat production (March 2014)Gran Class seat production (March 2014)
To be installed in the new E7 Hokuriku Shinkansen* passenger cars
1. Passenger-friendly design enfold passenger in comfort
2. Luxurious seat made to match the Gran Class experience (genuine leather quilting, etc.)
3. Control system that is simple and easy to use (single-motion stowable table, etc.)
New E7 Gran Class seat
(Photograph courtesy of JR East)
* Hokuriku = North region of Japan; Shinkansen = Bullet train
4) New Customer Business Activities
20/23
Expanding sales activities for NCB (new customer business)Expanding sales activities for NCB (new customer business)Undertake the promotion and sales of new products, creation ofnew technology and meeting customer needs
Tech Day: Ford head office
We promoted Toyota Boshokugroup’s high technological capabilities to European automotive manufacturers
Debuted at the Frankfurt Motor Show (IAA)
Tech Day: Daimler head office
Nov. 2013
Jan. 2014
Sept. 2013
4) New Customer Business Activities
21/23
Adapt global production bases to handle new businessStatus of products that began production in FY2014
Began production of new customer business products and proactivelyworked to increase this businessBegan production of new customer business products and proactivelyworked to increase this business
Europe & AfricaEurope & Africa・・Seat assemblySeat assembly・・Seat coversSeat covers・・Door trimDoor trim
The AmericasThe Americas・・Seat coversSeat covers
JapanJapan・・Cabin air filtersCabin air filters・・Oil filtersOil filters
First seat assembly orders from European manufacturers
Europe & Africa
(Reference:order status)
2323 12
Japan The Americas
9
Total
*Total as of March 31, 2014
67
Asia & OceaniaAsia & Oceania・・Seat back boardSeat back board・・Seat coversSeat covers・・Cylinder head coverCylinder head cover
Status of products that began production in FY2014
Asia & Oceania
4) New Customer Business Activities (Regional In-house development)
22/23
Designed specifically to enhance luxury & comfortPremium Seat Package to meet customer needs in ThailandPremium Seat Package to meet customer needs in Thailand
Per customer order, rear seat packages can be installed in Thailand produced “Camry” models
Moving to the next stage with Moving to the next stage with
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Summary
23/23
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DisclaimerThis report contains forecasts and expectations that relate to future plans andstrategies in addition to the expected financial results of the Toyota BoshokuCorporation and the Toyota Boshoku group.Within are estimates based on assumptions and opinions that have been formedby the company from the information available at the time of writing. They involve risks and uncertainties. Accordingly, actual results may differ from the company's forecasts.
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